Traditional banking is passing through a transition period in bank-client relations, Tamerlan Rustamov, head of the expert group on payment systems and digital banking of the Azerbaijan Banks Association (ABA), told Trend.
According to Rustamov, this transition is characterized by the formation of digital bank-client relations, the expansion of products and services, the introduction of the latest innovations in the field of information technology.
"In the digital transformation, Azerbaijani banks are paying special attention to the development of mobile banking services in the remote building of bank-client relations," he said. "According to ‘Innovation by domestic payment systems in the pandemic. Survival or development’ report of the World Bank, published in 2021, most (90 percent) of survey participants among the governing members of 48 organizations in 40 countries of the world consider mobile solutions as the most promising areas for innovation."
The ABA’s representative highlighted a number of main factors that determine the need to expand the use of mobile banking.
First of all, Rustamov noted the availability of an accessible payment means and its widespread use.
"The software of mobile phones includes various functionalities, such as internet access, convenience, use of various communication methods - USSD requests, information via SMS or a call. All this has a positive effect on the use of a smartphone as an effective payment means," he said.
"According to the International Telecommunication Union, there were 107 mobile phones for every 100 people in Azerbaijan in 2019. The widespread use of mobile phones is prompting international payment systems and financial institutions to offer their products and services via mobile phones, thereby ensuring customer satisfaction," he added.
Another aspect of expanding the use of mobile banking, in his opinion, is the payment habits of the new generation.